A major phenomenon is about to arrive in Canada, and brokers are being called to help clients while there is still time to protect them.
Most Canadians have heard of El Niño, but many do not realize that climatologists believe this year will bring a “monster” El Niño that will spark “forest fires, drought and pestilence” throughout Western Canada, according to CBC News.
Since the weather phenomenon will wreak havoc on the already devastated areas of Saskatchewan, Alberta and British Columbia, brokers need to act now to prepare clients for impending disaster.
"We don't see the effects of El Nino until late fall, winter and early spring," David Phillips, senior climatologist, Environment Canada, told CBC News.
This has caused researchers to believe that many regions could be exposed to three additional seasons of dry, hot weather, exacerbating drought conditions in the Prairies and causing additional wildfires to spread along the West Coast.
As it stands, brokers in British Columbia are already struggling to keep up with the deluge of claims resulting from this year`s blazes. The province has experienced over 1,300 wildfires since April, and peak wildfire season doesn’t occur until August.
Brokers in particular are worried, since additional fires could catch Canadian homeowners off guard. Many lack sufficient coverage as it is.
“One of the primary issues right now is that more people are building homes at the interface of the forest, and it’s up to brokers to make sure that they’re insured to value,” said Ruth Hoyte, AE Berry – Baron Insurance. “That was a lesson we learned from the Okanagan mountain fire in 2013 where there was a lot of devastation and homes affected that were not insured to value.”
Hoyte frequently witnesses British Columbians attempt to purchase additional property insurance when they see an imminent wildfire threat, but at that point, it’s too late to be protected.
“We get a lot of phone calls from clients who see a fire approaching and suddenly want to insure their cabins, and we have to say no,” she said. “Although brokers are there to service clients, if they’re within a certain radius of the fire, their binding authority is restricted and they have to deny the request.”
For this reason, she reiterates an important message for brokers: “A big part of what brokers do is educate clients and act as risk managers.”
